The Government of Indonesia has invested IDR3.2tn ($205.3m) into state-owned rail operator PT KAI to develop a 142km high-speed railway line, reported Reuters.
This project is being carried by a consortium called KCIC, which comprises Indonesian and Chinese state-run firms.
Indonesia’s KAI and Wijaya Karya own 60% of the consortium, with China Railway Engineering Corporation and other Chinese firms owing the remaining stake.
Part of China’s Belt and Road Initiative, the project was secured by KCIC in 2015.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataIt will connect the Indonesian capital of Jakarta with the textile hub of Bandung in West Java.
See Also:
There have been delays in the project due to the Covid-19 crisis.
The infusion will partly support the project, which was initially planned to entail an investment of $6bn.
However, plans of a commercial launch by June this year led to cost overruns, with a further $1.45bn being estimated last year.
The firms involved in KCIC planned to raise their equity interests and Indonesia looked to raise nearly $1bn in loan from the China Development Bank to cover the additional costs.
In its latest statement, KAI pledged to project safety after deaths of two Chinese rail workers were reported last month by the Antara news agency.
Last year in August, China Railway unveiled the project’s first high-speed bullet train, designed to run at a maximum speed of 350km/h.
The project is expected to reduce journey times between Jakarta and Bandung to 40 minutes from more than three hours.
